ANNOUNCEMENT 13 Apr 2018
The Japanese Bank for International Cooperation (JBIC) on April 13, 2018, signed a USD 560 million loan agreement for the project financing of Nghi Son 2 Power Limited Liability, Company, (NS2PC), a Vietnamese company invested in by the Japanese Marubeni Corporation.
NUMBER OF INTERVENTIONS
Project Finance and Political Risk Guarantee for Nghi Son 2 Coal-Fired Power Generation Project in the Republic of Vietnam
ベトナム社会主義共和国ギソン２（Nghi Son 2）石炭火力発電事業に対するプロジェクトファイナンス及びポリティカル・リスク保証
On April 13, 2018, a USD 560 million loan agreement for the project financing with Nghi Son 2 Power Limited Liability, a Vietnamese company invested in by the Japanese Marubeni Corporation and others. was signed by Japanese Bank for International Cooperation (JBIC). The loan is co-financed totals about USD 1,869 million due to the investment from Export-Import Bank of Korea (KEXIM), Sumitomo Mitsui Banking Corporation, MUFG Bank, Ltd., Mizuho Bank, Ltd., Shinsei Bank, Ltd., Oversea-Chinese Banking Corporation, Ltd., DBS Bank, Ltd., and Malayan Banking Berhad. On top of this, a political risk guarantee is provided by JBIC and KEXIM. The overarching goal for this loan is to support overseas infrastructure projects by making Japanese companies participate in the project as investors, as well as operating and maintaining the power plant. This loan thereby contributes to maintaining and strengthening the international competitiveness of Japanese industries.
Overseas investment loans
JBIC provides direct loans named overseas investment loans to Japanese companies, overseas affiliates or joint ventures where Japanese companies hold equity interests and governments or financial institutions partying with such overseas affiliates. Loans support projects in specific sectors or with a specific purpose of interest to Japan. Further information can be found on the Bank’s website under overseas investment loans.
Project financing loans include preferential terms such as repayments being solely made from the project’s cash-flow generation and secured on the basis of the project's assets alone. As such the loan agreement is tied to the project's finances and not the company in question.
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.